Some economic growth – from slight to moderate – was reported in several Federal Reserve Districts over the last month, but some of the data indicates that growth, if any, is coming mostly from high-income households, the agency said in its latest semi-monthly report.
In its latest Beige Book, released Oct. 14, the Fed said all but three of its districts reported some growth, ranging from slight (four districts) to modest (three) and moderate (two).
But the Fed’s report also indicated that the growth, particularly among consumers, was being generated by the higher-income households. The Fed reported that more than half of its districts said consumer spending was driven by high-income households.
However, the Dallas District (which reported overall moderate growth led by manufacturing) said that its district had solid retail sales – but that there were some reports of lower-income customers “being more cautious with spending.”
The Beige Book reported that, overall, most of its districts reported that firms have maintained a positive economic outlook for the coming months. “However, expectations tend to be for slight growth, weighted toward manufacturing and burdened by persistent uncertainties,” the report noted.
The Beige Book is a semi-monthly report (published eight times a year) that provides anecdotal information on current economic conditions from each of the 12 Federal Reserve Bank districts through reports from bank and branch directors and interviews with key business contacts, economists, market experts, and other sources.
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